Your Employee Matters

According to Wikipedia, “a learning organization is the term given to a company that facilitates the learning of its members and continuously transforms itself.” This concept was popularized by Peter Senge in his excellent book The Fifth Discipline. No, it’s not an old rock group; Senge ran a think tank at MIT Sloan School of Management. His Fifth Discipline Fieldbook provides a manifesto that companies can use to build a learning organization.

According to Senge, there are five main aspects to a learning organization. Let’s discuss how each of those might apply to the HR equation.

1. Systems Thinking. This means that HR doesn’t operate in a bubble, but rather in concert with other aspects of the system. Understand how HR affects everything in your business from operations to sales, marketing, customer support, and so on. A strategic HR manager will take a cross-disciplinary approach when it comes to their HR practices, training, etc.
2. Personal Mastery. This means you commit yourself to the process of learning. How many books have you read in your area of expertise during the last year? Do you receive trade publications, attend trade conferences, network with your peers, and look for additional learning outside of your expertise? Do you make sure everyone else at your company is engaging in personal mastery?
3. Mental Models. Basically, this means the assumptions or framework in which each of us operates. To become a learning organization we have to challenge these models, and HR must be part of this conversation. A classic mental model in the HR arena is the management of performance evaluations. In most organizations, this model is more than 50 years old, meaning that it’s time to retire it. What new model can you develop that will generate integrity, trust, and better performance?
4. Shared Vision. All business authors stress the importance of this factor. Jim Collins emphasized it in his Good to Great book, as did Senge in The Fifth Discipline. How is HR helping to push out and market your organization’s vision? How are you making it “visual”? For example, if I walked into your company would I know what your vision is without having to ask about it? If not, start working with the marketing department and engage in some internal” branding” of the vision.
5. Team Learning. As the saying goes, none of us is as smart as all of us. How can we create vigorous dialogues in which we all learn from each other? I encourage you to go to the five-minute video I did on a very powerful team learning process that anyone can facilitate.

In growing your business as a “learning organization,” you’ll probably need to deal with obstructions. Opposition might come from individuals trying to protect their turf, one department not wanting to communicate with another, a lack of empowerment among leaders or employees — or an organization that’s just too big to share information fully (Senge suggests a cutoff point of 150 employees). Cultural dimensions can also impede the learning process. What barriers have you identified to building a knowledge organization? What strategies do you have to get past these blockages? If you have yet to do so, I encourage you to pick up a copy of Senge’s The Fifth Discipline as well as The Fifth Discipline Fieldbook.

The May 2012 issue of HR Magazine has a special report on how to create an HR internship. I have constantly preached the importance of HR managers delegating less valuable activities so that they can focus on more strategic areas. Having an intern is the perfect way to perform this handoff!

Other benefits of internship include:

• Provides a powerful recruitment tool
• Decreases turnover
• Contributes to positive branding
• Stresses altruism Improves employee morale
• Helps generate new ideas
• Adds social networking know-how

These young people usually earn $10-$15 per hour. Although it certainly helps to have interns do some grunt work, you’ll also want to give them challenging assignments and developmental training. You can find interns by word-of-mouth, going to your local SHRM chapter, local schools, college career centers, or by visiting www.internships.com.

An excellent article in Corporate Counsel lists these guidelines to help minimize the risk of preventing data from walking out the door:

1. Ensure that employees sign confidentiality and invention-assignment agreements on the first day of work, if not before.
2. Provide meaningful training.
3. Gain control of remote-access and data-protection policies.
4. Set up data protection and employee mobility restrictions affect incoming and outgoing employees.
5. Let laptops cool off before allowing the IT department to repurpose them.
6. Don’t rely on only unpredictable non-competition covenants alone.

I encourage you to read the entire article here.

I’ve had the opportunity to answer more than 3,000 “hotline calls” in the past 10 years. On many of those calls, the employer wanted to know if they’d be sued for terminating someone.

After representing hundreds of employees during my litigation career I can tell you that “how” an employer fires an employee has a lot to do with an employer’s propensity to get sued. Here are some guidelines to consider:

• Don’t create a lie to make the terminated employee feel good. Recently I received a hotline call which described how an HR consultant working with the company advised them to lie about the reason for the employee’s termination by claiming that it was a “layoff.” Horrible advice! The problem with this approach is if the employee ends up suing you for whatever reason you’ll then have difficulty proving that poor performance, etc. was the reason for their termination. Telling employees the truth is the best way to stay out of the courtroom — and don’t ask HR people legal questions that require a lawyer’s judgment!
• Don’t underestimate how traumatic the event will be for the terminated person or tell them how tough it was on you. Yes, it’s tough for you, but guess what? It’s even tougher on them and their family. Feeling bad yet?
• Don’t lose sleep over the termination. Where did management fail this employee? Did the relationship begin with a bad hire? If you’ve done everything you can to be responsible to the employee, then you should have no fear or other negative emotion associated with letting them go. Terminating poor performers allows them to work someplace where they’ll have the opportunity to perform better. It also relieves the burden on your remaining employees. Again, if you have any concerns, what is the source of those concerns?
• Don’t embarrass the employee. Try not to terminate them in front of the rest of the team, make a scene of their walking out of the office, etc. Terminate in a dignified manner, even if the employees have been less than dignified themselves. You don’t have to stoop to their level. If the employee is belligerent or obnoxious, do what you must to calm the situation and protect yourself.
• Don’t turn the termination into a one-hour conversation. By now there should be no surprises. Employees should have known that if they didn’t improve their performance they would be off the bus. Don’t negotiate or sympathize — just let them go.
• Don’t make promises you’ll regret. In a well-known case, a school concerned about the employee’s backlash (he claimed he was falsely accused of sexual harassment) offered a letter of recommendation on which a subsequent employer relied. As it turned out, the employee was once again accused of sexual harassment. When the victims of this alleged sexual harassment sued the new employer, they cross-complained against the previous employer for misrepresentation. Don’t be that previous employer!
• Finally, don’t try to buy off terminated employees with a release for two weeks of severance — all this will do is invite them to see a lawyer. Don’t offer a release when you fire employees for poor performance or because you’re in fact in an economic downturn. They don’t deserve the former and you can’t afford the latter!

If you’re an HR That Works Member, follow the Pre-termination Checklist.

During recent months I’ve been reading a large number of lawsuits related to industrial espionage, sabotage, misappropriation, and theft. Most of these cases involve a current or former employee or some third party stealing valuable financial or other information. In several recent decisions, courts have ruled that they lack criminal jurisdiction over theft of information by an employee who had access to a company’s data base. The courts essentially held that the misappropriation in question did not violate the National Stolen Property Act, the Economic Espionage Act, or the Computer Fraud and Abuse Act (CFAA). In the case of US v. Nosal, Judge Kozinski, known for his left-of-center opinions, engaged in a display of semantic gymnastics to rule that the Computer Fraud and Abuse Act was nothing more than an anti-hacking statute and doesn’t apply to misappropriation. Essentially, he argued that employees who wasted time on Farmville, Facebook, New York Times, daily Sudoku, etc. would be in violation of the Act, which is too broad for the government to enforce. If you want to see some feathers fly in a scorching dissent, read the case.

Bottom line: Make sure to buy Cyber Liability insurance; it looks like you’re going to have a hard time g

We usually think of HR helping to avoid employment practice risks. We want to make sure not to be trapped in wage and hour claims, discrimination and harassment litigation, and wrongful termination lawsuits. Then there’s leave management, including ADA and FMLA. Although these are the major issues in HR risk management, HR is also instrumental in helping with other aspects of managing risk, such as:

• Workers Compensation — Insurance companies don’t pay claims, they finance them. When you suffer a Comp claim, your experience modifier (“mod”) increases to repay the claim during a three-year period at a high interest rate. This can be the most expensive money that your company borrows. That’s one reason we recommend that employers do everything possible to get employees returned to work. Has your HR person helped develop a comprehensive return-to-work program?
• Cyber Liability — To what extent are poor employee practices leaving your information systems vulnerable? To what degree is HR working with IT and security to make sure that new employees receive proper orientation and terminated employees are managed effectively from a security standpoint? For example, what precautions have you taken to have mobile devices returned, passwords retrieved, trade secrets protected, etc.? To what degree does HR make sure that telecommuting employees don’t expose the company to cyber risks?
• Social media — One element of cyber liability, risk from social media, is expanding every day. Has HR made it clear who owns the company Twitter account? Have they set social media guidelines? Do they know how to respond to any perceived risks, such as negative employee postings?
• Privacy exposures — Whether it’s medical records (HIPAA), Social Security information, financial information, etc., employees can both generate exposures and be subject to them.
• Disaster planning — One disaster can wipe out your company overnight. Whether it’s a tornado, hurricane, earthquake, flood, or a brutal snowstorm, the news is replete with the devastating impact of such events. To what degree has HR helped generate a plan to protect the company in the aftermath of a disaster?
• Employee Benefits — With a growing number of ERISA claims and a rapidly changing benefits landscape, HR is thick in the mix. Who is responsible for staying on top of the emerging benefit trends?

Perhaps the greatest risk that HR can help with is growing the business: Providing strategic advice about what your company needs for growth and how to move in this direction. At smaller companies, it’s difficult for the HR executive to wear all these hats. In this situation, many businesses have partnered with their insurance agency or other professional providers of risk management services.

SHRM surveyed 504 HR professionals on their degree of satisfaction with 26 different job attributes. The respondents’ top five concerns, in order, were:

1. Opportunities to use skills and abilities — Exactly what skills and attributes are you interested in using? Does management even know that you have this ability or desire or are you keeping it to yourself? For example, if you’ve recently completed a course of self-study, does management know this?
2. Relationship with immediate supervisor — This holds true for all employees, not just HR executives. What, if anything, feels “unfair” about this relationship? Have you been given time to discuss your agenda for the company and your career? Has your boss pooh-poohed some of your ideas? Does your immediate supervisor even know what’s most important to you in the relationship or are you hoping that he or she can guess at it?
3. Communication between employees and senior management — It’s highly frustrating to be stuck in the middle when there’s a poor relationship between manager and employees. (Guess what? It’s your job to help improve this communication!)
4. The work itself — If you find yourself doing under-valued work, whose fault is this? Have you made the case for ditching your $10-$20 per hour work so you can focus on higher value work? Can you show management the ROI on your moving up the ladder?
5. Autonomy and independence — You want to do your own thing like everybody else. Have you earned the trust necessary to have this independence? What level of authority do you have?

Interestingly, compensation and pay came in at seventeenth place! As I kid in my workshops with HR executives, “They know this about you.” In my survey of HR executives, most of them tell me that what they want more than anything else is make a difference — which is great. Just don’t underestimate the importance of getting paid well to do it!

HR operates in a highly competitive landscape. For example, your ability to attract and retain employees more effectively than your competitors will benefit your bottom line. HR can play a key role in this process. How would your company compare to the competition in these elements of employee compensation?

• Salaries and wages
• Benefits and other rewards
• Training
• Career growth opportunities
• Flexible work arrangements
• Retirement benefits

If you’re not clear about how you stack up, you have some serious homework to do. Many industry groups or local employer groups can help you obtain data related to your industry. Contacting a recruiter in your field can also help supply you with this information. Remember that these factors can have a significant effect on your ability to attract employees, get them engaged, retain them, avoid unionization efforts, and improve your brand and customer relations.

HR That Works has an extensive report and checklist about what’s known as the “contingent workforce.” This includes temporary employees, leased employees, and more. Here are some questions to consider in these relationships:

• Who is responsible for what? — As with any arrangement, it’s important to study the contract. For example, if an employee isn’t working out, who should be responsible for firing them? Consider every aspect of managing personnel from hiring through performance management and retention to termination.
• How much are you paying to outsource various HR functions? — Whether you’re outsourcing because you don’t have the time, expertise, or desire to do the job in house, you’ll have to pay for someone else to do it for you. What’s the competitive rate? What about the provider’s experience and results? Do your homework and interview at least a couple of providers and their clients before you choose one.
• What is the provider’s hiring process? — They should be able to show it to you in writing. If they can’t, pick someone else. Make sure that the provider does proper skill testing, character assessments, background checks, extensive interviews, immigration checks and pre-hire physicals.
• What references can the provider offer? — Don’t just ask for references, get the names of companies who have used the vendor during the past year. See if the vendor is willing to share this information and allow you to interview those companies. Ask “What will these companies tell us?” Then do Google research to see what comments you can find online.
• What’s the knowledge on board at the vendor? — How long has the person who does the hiring and staffing been doing their job? What are their credentials? Is there expertise on board to help you with any compliance concerns?
• Does the agent carry the right insurance? — Depending on whose payroll is involved, the law requires employers to provide Workers Compensation benefits, as well as withholding unemployment and Social Security taxes, and more. If the temp or leasing agency treats their workers as independent contractors you could end up being in a heap of trouble.
• Does the agency provide employees benefits? — Remember, if a worker walks and talks like your employee, they’re probably going to be considered your employee, whether they’re a sole employee or in a joint employer relationship. If an employee receives no benefits from the provider, you can easily face a hefty benefits claim down the road.
• What about union activities? — To what extent has the agency been faced with unionization efforts? Your temporary workforce might be considered part of an existing bargaining unit and thus covered by your union contract.

HR That Works members should view the extensive Contingent Worker Report and Checklist.

When it comes to outdoor workers, “water, rest and shade” can literally make the difference between life and death. Every year, thousands of workers nationwide suffer from serious heat-related illnesses. If not addressed quickly, heat exhaustion can become heat stroke, which has killed — on average — more than 30 workers annually since 2003. Labor-intensive activities in hot weather can raise body temperatures beyond the level that normally can be cooled by sweating. Heat illness might first manifest itself as heat rash or heat cramps, but can quickly turn into heat exhaustion, and then heat stroke, unless workers follow basic preventive measures.

“It’s essential for workers and employers to take proactive steps to stay safe in extreme heat, and become aware of symptoms of heat exhaustion before they get worse,” says Dr. David Michaels, Assistant Secretary of Labor for Occupational Safety and Health. “Agriculture workers; building, road and other construction workers; utility workers; baggage handlers; roofers; landscapers; and others who work outside are all at risk. Drinking plenty of water and taking frequent breaks in cool, shaded areas are incredibly important in the hot summer months.”

In preparation for summer, OSHA has developed heat illness educational materials in English and Spanish, as well as a curriculum for workplace training. Additionally, a Web page provides information and resources on heat illness — including how to prevent it and what to do in case of an emergency — for workers and employers. The page is available here.

OSHA also has released a free application for mobile devices (both Android-based platforms and the iPhone) in English and Spanish that workers and supervisors can use to monitor the “heat index” at their work sites. This app displays a risk level for workers based on the index, as well as reminders about protective measures to take at that risk level. You can download the app here.

NOAA also includes pertinent worker safety information on its heat watch Web page.